mybizstart

HMRC – Complicated and inconsistent

Sylvia Constantine — Thu, 23 Jul 2009 01:19:30 +0100

We have one of the most complicated tax systems in the world. It is little wonder then that even the civil servants at HMRC do not understand it. So what chance do we have? I have made it my mission to de-mystify tax for start up businesses. This means that I will ask HMRC for a “ruling” on what is an allowable cost, for example. I ask the question several times and then confer with a tax accountant. I regularly receive different answers and confusing replies. HMRC has often told me that if I want the answer I should ask an Accountant. I know that my course content is correct. I also know that the techniques I use to explain tax rules will simplify and de-mystify the subject. I have some very good contacts at HMRC and some of them have even asked to come on my course!

How to succeed at retailing

Gavin Boyce — Tue, 21 Jul 2009 21:33:48 +0100

There is no magic answer. The retail sector is one of the toughest at the moment. (Some of the tips on running a pub apply to retail as well). Here is a success story. You would not expect independent electrical retailers to stand a chance in the face of competition from national chains but I know an independent that has not only succeeded with one shop but also opened a second successful outlet. What was the secret? They could not complete on pricing so they have gone for quality of product and service. They identified their niche as being people who were technophobes and could not cope with a new TV or DVD without help. This retailer has very loyal customers who return time and time again for all their electrical goods. They have been in business for over 40 years.

Pub industry – hard work and high risk

Gavin Boyce — Mon, 20 Jul 2009 19:42:21 +0100

The pub industry has become a “graveyard”. We recently helped a couple that, despite every persuasion we tried, had gone ahead and signed up for a pub. The building was in very poor condition. The facilities were either very poor or unusable. The brewery did not deliver on its promises and commitments. They also found that the more beer they sold, the more money they lost because of the high price per barrel being charged by the brewery. They could not get out of the lease.

It is possible for pubs to succeed but the conditions need to be right:

Location, location – being located in the right place is crucial
Condition of the building – newly refurbished buildings with good internal facilities are far more likely to succeed
Suppliers pricing – Breweries that insist that you only buy their beer are in control of prices. You can usually buy beer much cheaper elsewhere but you may be “tied” to your brewery
Food – Pubs that offer food attract more customers. Choose menus carefully. Ensure you meet food hygiene regulations
Do it yourself – The more that you can work yourself, the less that you will pay in wages. Running a pub can be a family affair. Employing family can be cheaper and more flexible.
Consider other income or customer generating activities. Can you host a car boot sale, local farmers market, local club or society meetings or events?

Spot the Opportunity

Gavin Boyce — Thu, 16 Jul 2009 00:50:16 +0100

The current economic climate presents a whole range of opportunities. The challenge for a successful business is to spot a new niche. I have assisted several new web businesses recently. They have seen an upturn during the downturn. They have the right product at the right price and deliver or exceed their customer service promises.